Case Notes - January 2024

Case: The Department opened an investigation on a general lines agent after receiving a referral from another state's insurance department.

The licensee failed to disclose the revocation of his license issued by another state on his Florida license application. The applicant's license was revoked in the other state for altering the "garage" address and date of birth on numerous auto insurance applications to obtain more competitive rates.

Disposition: License suspended for 18 months.

Case: This case was opened by Investigation based on a complaint from an insurance agent against a health insurance agent. The complainant alleged a life and health agent devised a scheme to use the complainant's Department license credentials to write health insurance applications without her knowledge or consent.

During the investigation, investigators obtained affidavits from four insurance agents. Those agents further alleged the subject had defrauded them by applying for advance commission loans under their names without their consent. Investigators also obtained relevant supporting documents from banks, courts and the lender that provided the loans.

The subject, along with four other agency co-owners, implemented a scheme to steal the identities and Department credentials of several insurance agents who briefly worked for his insurance agency. After the agent's personal information was obtained, the subject and his cohorts applied for large loans using the names of the agent-victims. The subject directed the lender to deposit the loans in his business checking account. The scheme began to unravel when the victims were sued by the lender for loan defaults.

Disposition: License revoked. The revoked agent was later arrested and charged with Grand Theft, Scheme to Defraud/Obtain Property and Criminal Use of Personal ID Information.

Case: An investigation was opened when a consumer submitted a complaint to the Bureau of Investigation alleging a general lines agent failed to remit three annual escrow payments from the consumer's mortgage company to pay his homeowners' premium. The consumer was not aware the premiums weren't paid until he had a claim and was told he had no coverage. The agent had provided the consumer with false certificates of insurance.

Investigators conducted an agency inspection, and obtained consumer affidavits, and insurer and bank account documentation. During the investigation of a second consumer complaint, investigators determined the agent remitted only a fraction of the funds sent to his agency by the consumer's mortgage company to pay the consumer's homeowners' insurance premium. To compound matters, the consumer’s lender did not receive the cancellation refund from the insurer until seven months after the policy cancelled.

Disposition: Licenses suspended for two years.